They just reported, and increased their dividend significantly again. The share price drop kind of puzzled him. It may have been a bit of an indictment, with the federal government and regulators saying that they were worried about the Canadian mortgage market. People may have sold down their shares on that news. Feels there will be a slowdown in Canadian housing, which will slow down the number of mortgages written, and thus the number of mortgages insured. The share price could go down further, and this is a company he would be looking at. Dividend yield of 5.8%.

He bought it after the change in mortgage rules. They are the second largest provider of mortgage insurance. He thinks there will be no housing bubble crash. The risk reward for the 6% dividend yield is much more to the upside. They will be fine if employment in Canada does not go down.

The largest independent mortgage insurance provider. The stock had a big drop today. Part of the concern of the street is that Ottawa is asking some of the lenders to bear part of the risk, particularly on certain mortgage sizes. He has not been particularly interested in this name.

A value stock, but that has been the case for many years, and has been somewhat of a value trap despite management’s decent execution. This is not a growth business anymore. If you are concerned about Canadian real estate, this is definitely a name to be concerned about. As well, they have exposure to Western Canada, and how that is going to impact their results. 5.1% dividend yield should be safe.

A default mortgage insurance broker. The chart on this shows lower highs and forming a descending triangle. It is now breaking below this pattern, which is actually bearish because it has broken support. If you are betting on this, you are betting on the housing market in Canada as being strong. There are a lot of questions around that right now.

Default mortgage insurance providers. Likes the dividend yield of 5.66%. Cheap on a PE basis at about 8X. Also, trading below BV. There is a large Short position on this, which could result in a very nice upside as the Shorts are focusing too much on the valuation of the housing market. There are definitely pockets in Toronto and Vancouver, but doesn’t feel this is a problem for this company.

If the housing market got really bad (dropped 20-30%) here this company would go to zero. This is unlikely, however. This is a very binary type of situation. It is like picking up nickels in front of a bulldozer.

Would be really cautious on this. Had a very good run. The story has been leveraged on the government’s CMHC program clawing back and allowing them to really prosper, which he thinks it can do. But, at the end of the day, you’re taking consumer credit risks. From the macro numbers he sees, that gives him pause. Also, it is a little on the expensive side.

This tends to increase dividends in the 3rd quarter, so you should look for one in August. Anything related to the mortgage business is tied to interest rates. Although interest rates have come off currently, he believes their ultimate direction is up. That will put pressure on anybody who is related to that business. He would be little bit cautious. Prefers Canadian banks.

There is a new player in the space right now, but he believes the Canadian dollar will improve as well as the economy. You will see greater employment down the road and this company will benefit. They have done an excellent job, dividend increase, share buyback. People expected the Canadian market to collapse. 4.1% dividend.

Part of a duopoly, CMHC and itself. Supply about 95% of the insurance market for the mortgage insurance market. Has had very little respect. Trading well below Book of about $28.50. Down partly because its US parent was having some tough times and, also, people are still bothered by the Canadian real estate market. If you own, you could consider taking some money off the table on its recent move up. Company has over $200 million of excess cash.

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